Internet Stocks Take A Breather
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After posting solid gains over the past few sessions, Internet stocks ended mixed Tuesday as investors took some money off the table and shifted it to blue chips.
Internet.com's Internet Stock Index closed off 18.40, or 2.81 percent, to 636.99, the Nasdaq Composite shed 49.84 to 2,602.13 and the Dow Jones industrial average jumped 113.12 to 10,831.71 to set a new record.
Disappointing earnings caused shares of DoubleClick Inc. (DCLK) to tumble 23-1/8 to 148-1/2. The company reported a operating loss of 13 cents a share. Although that was in line with expectations, many investors had hoped for a better performance.
Internet auctioneer eBay Inc. (EBAY) gained 1/4 to 209-1/4 after reporting earnings increased to 5 cents a share, up from a penny a share last year. Those numbers were ahead of analysts' expectations for a 2-cent profit.
One of the most active Internet stocks Tuesday was auctioneer Bid.com International Inc. (BIDS). The Canadian company is partnering with American Interactive Media to broadcast its first auction live over the Internet later Tuesday.
Shares of Priceline.com Inc. (PCLN) gained 8-15/16 to 129-11/16 after trading as high as 140. On Monday, the company said more than 1 million customers had bid on airline tickets and hotel rooms on its Web site over the past year.
America Online Inc. (AOL) lost 7 to 155. After the closing bell, the company reported earnings of 11 cents a share compared to the 9 cents forecast. Revenues approached $1.3 billion compared to $757 million a year ago. Advertising and e-commerce revenues came in at $275 million, well above the $190 million analysts were expecting.
Internet bellwether Amazon.com Inc. (AMZN), which was off 1-5/16 to 205-7/8. The company is expected to lose 29 cents a share compared to a 7-cent loss a year ago when it reports its earnings on Wednesday.
Investors reacted favorably to Tuesday's Internet IPO. Razorfish Inc. (RAZF) soared 17-1/2 to 33-1/2. The company, which designs Web sites for electronic commerce companies, debuted at $16 a share. The IPO raised $48 million for the company, which sold a 12 percent stake to the public.
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